SILK   MILL   COSTS 


SILK  MILL  COSTS 


BY 

CLARENCE  MUNRO  DAY 

CERTIFIED  PUBLIC  ACCOUNTANT 
UNIVERSITY  OF  THE  STATE  OF  NEW  YORK 


1912 
CLARENCE   M.  DAY,  C.  P.  A, 

152  MADISON  STREET,  BROOKYLN 
NEW  YORK 


COPYRIGHT,    1912,    BY 
CLARENCE    M.    DAY,    C.  P.  A. 

PUBLISHED   FEBRUARY,    1912 


THE-PLIMPTON-PBE88-NORWOOD-MA88-U-8-A 


INTRODUCTION 

To  install  a  cost  system  in  a  silk  mill  is  gen- 
erally considered  a  very  difficult  matter,  and  most 
proprietors  regard  it  with  apprehension.  It  is 
hard  to  understand  why  this  is  so,  for  the  silk 
is  valuable,  and  it  requires  very  complete  rec- 
ords in  order  to  prevent  loss  by  carelessness  or 
theft.  Where  such  records  are  made,  the  foun- 
dation of  a  cost  system  already  exists,  and  the 
installation  is  simply  a  matter  of  arranging  the 
general  control  of  the  various  processes. 

This  book  is  based  upon  a  long  experience 
in  cost  accounting,  and  the  novel  methods  of 
computing  the  cost  of  making  the  warps  and 
weaving  the  goods,  have  proven  accurate  and 
inexpensive  in  operation.  They  are  simple  and 
complete  and  will  no  doubt  appeal  to  concerns 
that  appreciate  the  need,  because  they  can  be 
adopted  without  disturbing  the  harmony  of 
the  mill. 

The  book  first  presents  a  synopsis  of  the  com- 
plete system,  to  enable  you  to  comprehend  its 
operation,  and  after  giving  a  complete  outline 
of  the  requirements,  describes  in  detail  the 
methods  and  submits  the  important  forms  to 
illustrate  the  work. 


247035 


TABLE  OF  CONTENTS 

CHAPTER  PAGE 

I.   OUTLINE  OF  THE  SYSTEM 3 

CLOSING  PERIODS 4 

SYNOPSIS 5 

REQUIREMENTS  OF  THE  SYSTEM        ....  6 

PROCEDURE  TO  COMMENCE 8 

II.  WARP  RECORD 10 

III.  COMPUTING  THE  COST  OP   WARPS       .     .  14 

VALUE  OP  WARP  USED 17 

SUMMARY  OF  WARPS  ON  HAND         ....  18 

SUMMARY  OF  WARPS  FOR  QUARTER        ...  19 

SUMMARY  OF  WARPS  USED 19 

ILLUSTRATION  OF  WARP  RECORD      ....  20 

IV.  COMPUTING  THE  COST  OP  WEAVING         .  21 

COST  PER  YARD 26 

PRICE  TO  SELL        27 

How  TO  ESTIMATE  THE  COST  TO  PRODUCE    .     .  27 

ILLUSTRATION:    ESTIMATING  THE  COST       .     .  31 

V.  PAY  ROLL         32 

SUMMARY  OF  PAY  ROLLS        32 

WINDING  AND  QUILLING 33 

WARPING 33 

TWISTING 34 

WEAVING 34 

PICKING         35 

VI.   INVENTORIES        36 

RAW  MATERIAL 36 

GOODS  ON  THE  LOOMS 37 

FINISHING  DEPARTMENTS        39 

TAKING  INVENTORY  OF  RAW  MATERIAL     .     .  39 

TAKING  INVENTORY  OF  GOODS  ON  LOOMS        .  40 

SUMMARY  OF  INVENTORY         41 

vii 


Vlll  TABLE    OP    CONTENTS 

PAGE 

VII.  RECORDS 42 

FINISHED  GOODS 42 

PURCHASE  JOURNAL 43 

GENERAL  LEDGER         44 

STATEMENT  MADE  FROM  LEDGER      ....  45 

WEIGHT  ON  GENERAL  LEDGER 45 

FINAL  SUMMARY 46 

RAW  SILK 48 

YARN 48 

RAW  SILK  AT  THROWSTERS 48 

SILK  AT  DYERS 49 

STOCK  CARDS 49 

SILK  USED  FOR  WARP 49 

WARP  BLANKET 49 

LOOM  BOOK 50 

Cur  TICKET 50 

OPERATIVES  PAY  BOOK 50 

VERIFYING  PIECE  WORK         51 

AVERAGE  THE  LABOR  COSTS        51 

JACQUARD  LOOMS 52 

PIECE  DYEING         52 

VIII.  PROVING  THE  RESULTS         54 

IX.   THROWING  MILL 57 

STATISTICAL  RECORD 59 

PRODUCTION 59 

FRACTIONAL  PAY  ROLLS 60 

RAW  SILK 61 

POWER 63 

DISTRIBUTION  OF  POWER  EXPENSE        ...  63 

LIGHT 64 

RENT 64 

DISTRIBUTION  OF  RENT  EXPENSE     ....  65 

MILL  EXPENSES  AND  SUPPLIES         ....  65 

DEPRECIATION 65 

EXHIBIT  A.   WARP  RECORD 12 

EXHIBIT  B.  FIGURING    COST    OF   WARPS  .     .  15 

EXHIBIT  C.  FIGURING  COST  OF  WEAVING  .     .  22 

EXHIBIT  D.  FIGURING  COST  OF  THROWING  68 


SILK  MILL   COSTS 


SILK  MILL  COSTS 

I.  OUTLINE  OF  SYSTEM 

"  Progress  never  comes  by  revolution,  but  by  evolution" 

To  install  a  cost  system  in  a  silk  mill  does 

1  not  necessitate  a  revolution.     By  long  expe- 
rience, each  mill  has  developed  methods  that 
are  peculiarly  suited  to  the  conditions  exist- 
ing in  it,  and  any  attempt  to  install  a  system 
simply  because  it  was  successful  elsewhere,  is 
sure  to  come  to  grief,  if  you  endeavor  to  make 
the  mill  conform  to  the  system,  instead  of 
making  the  system  conform  to  the  mill.   Rad- 

2  ical  changes  should  be  regarded  suspiciously, 
and  carefully  considered  before  attempting  to 
put  them  in  operation,  for  it  should  only  be 
necessary  to  arrange  the  records  to  meet  the 

3  needs  of  the  system.     If  you  keep  this  idea 
in  mind,  and  endeavor  to  adjust  your  methods 
so  as  to  get  the  required  information,  the 
results  will  be  more  satisfactory  than  if  you 
rush  ahead  and  make  unnecessary  changes. 

4  In  the  operation  of  this  system,  first  com- 
pute the  cost  of  preparing  the  material.     This 
includes  every  expense  until  the  material  is 
used  for  warp  or  filling.     Next,  figure  the 

3 


4 


SILK     MILL     COSTS 


cost  of  making  all  the  warps  that  were  made 
6  during  the  period.  (In  this  illustration,  I 
take  the  period  of  three  months  from  Jan- 
uary 1st  to  April  1st,  1900.)  After  deter- 
mining the  cost  of  making  the  warps,  the 
quantity  used  is  obtained  from  the  warp 
records  (Reference  No.  117),  and  the  cost  of 
making  the  various  kinds  and  widths  of  cloth, 
is  computed.  This  is  the  mill  cost,  and  the 
total  mill  cost  of  all  the  goods,  according  to 
the  cost  sheet,  should  equal  the  total  expend- 
iture shown  in  the  statement  made  from  the 
trial  balance.  A  rate  is  added  to  the  cost  of 
each  for  finishing,  and  the  result  is  the  cost 
to  produce.  The  price  to  sell  is  based  upon 
this  cost  (See  Reference  No.  218). 

6  Closing  Periods 

The  cost  system  should  be  closed  every 
quarter,  or  in  shorter  periods  if  desired.  If 
only  the  inventories  of  raw  material  and 
goods  on  the  looms  are  taken,  it  will  be  a  very 
simple  matter,  even  in  the  largest  mills, 

7  when  they  operate  upon  this  plan.     It  is 
never  necessary  to  close  down  in  order  to  take 
the  inventory  required  to  figure  the  cost. 
The  annual  inventory  can  be  taken  in  the 
customary    way,    if    desirable.     The    ledger 


SILK    MILL    COSTS  5 

accounts  can  be  closed  by  charging  the 
cost  of  the  production  to  the  merchandise 
account. 

SYNOPSIS 

8  First,   Figure  the  cost  of  preparing  the 
material; 

9  Second,    Figure   the   cost   of   making   the 
warps; 

10  Third,  Figure  the  cost  of  weaving  the  cloth; 

11  Fourth,  Add  the  cost  of  finishing. 

12  After  the  cost  has  been  computed,  a  per- 
centage should  be  added  for  mill  expenses. 
This  will  give  the  mill  cost.     To  the  mill 
cost  add  the  cost  of  finishing,  for  the  cost 

13  to  produce.     Consider  the  percentage  of  the 
sales  necessary  to  provide  for  selling  expenses 
and  for  profit;  deduct  that  percentage  from 
100  to  determine  the  percentage  of  this  cost 

14  to  the  sales.     To  obtain  the  price  to  sell,  in 
order  to  realize  the  desired  profit,  multiply 
the  cost  to  produce  by  100  and  divide  by  the 
percentage  of  the  cost  to  the  sales.     (See 
Reference  Nos.  218  and  154.) 

16      The     cost     of     preparing     the     material 
^includes : 

16  (a)    Value  of  silk  used, 

17  (6)    Value  of  yarn  used, 


6  SILK     MILL     COSTS 

18  (c)    Cost  of  throwing, 

19  (d)    Cost  of  dyeing. 

20  The  cost  of  making  the  warps  includes: 

21  (a)  Value  of  material  used, 

22  (b)  Cost  of  throwing  organzine, 

23  (c)  Cost  of  dyeing  material  used, 

24  (d)  Cost  of  winding  material  used, 

25  (e)  Cost  of  warping  and  beaming. 

26  The  cost  of  weaving  includes: 

27  (a)  Value  of  warp  used, 

28  (b)  Cost  of  twisting  on  the  looms, 

29  (c)  Cost  of  filling  required, 

30  (d)  Cost  of  dyeing  the  filling, 

31  (e)  Cost  of  winding  the  filling, 

32  (/)  Cost  of  weaving, 

33  (g)  Cost  of  picking, 

34  (k)  Provisions  for  mill  expenses. 

35  The  added  cost  of  finishing  includes: 

36  (a)    Piece  dyeing, 

37  (6)    Finishing. 

REQUIREMENTS  OF  THE  SYSTEM 

39  Take  Inventory  (REFERENCE  No.  250) 

An  inventory  must  be  taken  every  three 
months  in  order  to  determine  positively  the 
exact  quantities  of  material  actually  con- 
sumed during  the  period. 


SILK     MILL     COSTS  7 

40  Warp  Record  (EXHIBIT  A) 

A  record  must  be  kept  of  the  warps  made 
during  the  period,  and  the  following  infor- 
mation obtained  regarding  each  quality  — 
pattern  —  width. 

41  (a)    Yards  of  warp  made, 

42  (6)    Material  used  or  required, 

43  (c)    Yardage  off  the  looms, 

44  (d)   Finished  yardage. 

45  Pay  Rolls 

The  weekly  pay  rolls  must  be  analyzed 
in  order  to  keep  the  labor  costs  under  con- 
trol, and  supply  the  cost  of  each  operation. 

46  Production  Records 

The  results  obtained  in  each  department 
must  be  recorded  in  order  to  figure  the  cost 
of  each  operation. 

47  General  Books 

The  general  books  must  be  arranged  so 
that  a  positive  account  of  the  material  used 
will  be  available,  without  examining  the 
entire  records.  The  accounts  must  be  clas- 
sified so  that  a  statement  similar  to  Refer- 
ence No.  369  can  be  prepared  by  arranging 


8  SILK     MILL     COSTS 

the    items    of    the    trial    balance,    without 
making  adjustments. 

48  Order   of   Procedure  —  To   Commence   the 

System 

49  (1)    Take  inventory, 

60  (2)    Prepare  warp  sheets  for  new  quarter. 
Execute  a  warp  sheet  for  each  quality  — 
pattern  —  width;    and    enter    on    the    warp 
sheets  the  parts  of  warps  included  hi  the 
inventory.     To  illustrate  the  manner  of  pre- 
paring the  warp  sheets  see  entries   (Refer- 
ence   Numbers    121,    122,    123,    and    124). 

61  They  are  for  fractional  warps,  of  this  qual- 
ity —  pattern  —  width,   that  were  included 
in  the  inventory  of  January  1,  1900.     (See 
Reference  No.  105.) 

62  (3)    Make  an  analysis  of  pay  rolls.     (See 
Reference  No.  220.) 

63  (4)   Instruct  the  foremen  of  the   depart- 
ments   regarding    the    preparation    of    the 
following  records : 

64  Winding:    Wages  and  weights  of  winding 
organzine  and  tram,  and  quilling  tram.   (See 

66  Reference  No.  234.) 

66  Warping:  Time  required  for  each  quality 

67  -  -  pattern  —  width.     (See    Reference    No. 
236.) 


SILK    MILL    COSTS  9 

68  Twisting:    Time  required  for  each   qual- 

69  ity  —  pattern  —  width.     (See  Reference  No. 
240.) 

60      (5)   Arrange  voucher  journal.     (See  Ref- 
erence No.  342.) 


II.  WARP  RECORD 

61  Description  of  Warp  Record  (EXHIBIT  A) 

The  most  important  record   of  the  sys- 
tem is  this  warp  record.     It  should  show  all 
the    details,    of    each    quality  —  pattern  - 
width.     One  of  these  forms  should  be  exe- 
cuted for  each   quality  —  pattern  —  width. 

62  (1)    The  name  of  the  fabric;  (2)    The  char- 
acter of  the  harness  to  be  used  in  weaving; 
(3)  The    quality   number;    (4)  The   pattern 
number;    (5)  The  width  of  the  goods  to  be 
woven;  (6)  The  quarter  of  the  year  during 
which  the  warps  were  made;    (7)  The  kind 

63  of  material  used  for  warp;   (8)    The  dye  of 
the  material  used  for  warp;    (9)  The  quan- 
tity of  material   computed   to  be  required 
to  make  the  yards  of  warp,  No.  10;    (11) 
The  character  of  the  filling  to  be  used  in 

64  weaving  the  fabric;    (12)   The  dye  of  the 
filling  to  be  used;  (13)  The  quantity  of  fill- 
ing computed  to  be  required  to  weave  the 
yards  No.  14;    (15)  The  picks  per  inch  of 
the  fabric;    (16)  The  reed  used;    (17)  The 

10 


SILK    MILL    COSTS  II 

65  total  number  of  ends  in  each  warp;    (18)  In 
this  column  the  numbers  of  the  warps  are 
listed.    First,  the  fractional  warps  from  the 
inventory,  then  draw  a  line  across  the  form 
(see  Reference  No.  124).   Second,  list  the  new 
warps  as  they  are  made.     (19)   In  this  col- 
umn,   opposite    each    warp    number,    insert 

66  the  length  of  the  warp;    (20)  In  this  col- 
umn,   opposite    each    warp    number,    insert 

67  the  weight  of  the  warp;    (21)  In  this  col- 
umn,   opposite    each    warp    number,    insert 
the  total  yards  of  cloth  cut  from  each  warp, 
(when  it  is  completed).    At  inventory  taking 
insert   the  total  yards  of   cuts   made  from 

68  each  warp  up  to  date;    (22)  In  this  column, 
opposite  each  warp  number,  insert  the  total 
weight  of  the  cuts,  entered  in  column  No. 
21;    (23)  These  columns  are  only  used  when 

69  taking    inventory;        (24)  In    this    column 
enter  the  balance  of  the  warp  still  on  the 

70  loom  (whether  it  is  woven  on  the  loom  or 

71  not);    (25)  In    this   column   enter    opposite 
each  warp  number   the  yardage  woven   on 
the    loom.      This    is    required    in    order    to 
figure  the  value  of  the  filling  in  the  yardage 
woven  on  the  loom. 

72  If  the  goods  differ  in  quality,  pattern,  or 
width,  a  record  should  be  made  for  each. 


12 


SILK    MILL    COSTS 


EXHIBIT    A.     WARP    RECORD. 


Quality  No. (3) 

Pattern  No. (4) 

-Width (6) Inches 


-(2)- 


-Quarter- 


-(6)- 


Name  of  Texture 

Style  of  Harness 

Warp (7) Dyed (8) Requires (9) for (10) Yards 

Filling  (11) Dyed (12) Requires (13)— for— (14) Yards 

Picks  per  inch (15) Reed (16) Total  ends (17) 


(18) 

Numbers 
of  the 
Warps 

(19) 

Length 
of 
Warps 

(20) 

Weight 
of 
Warps 

(21) 

Yards 
Off 
Looms 

(22) 

Weight 
Off 
Looms 

(23) 

When  taking  Inventory 

(24) 

Balance 
of  Warp 

(26) 
Woven  on 
the   Looms 

SILK    MILL     COSTS  13 

To  illustrate:  If  quality  number  900  is  made 
up  in  patterns  114  and  115,  2.24  inches  and 
36  inches  wide,  four  records  should  be  made, 
namely : 

73  (1)  Quality  No.  900,  Pattern  No.  114,  Width  36  inches. 

74  (2)  Quality  No.  900,  Pattern  No.  114,  Width  2.24  inches. 

75  (3)  Quality  No.  900,  Pattern  No.  115,  Width  36  inches. 

76  (4)  Quality  No.  900,  Pattern  No.  115,  Width  2.24  inches. 

77  If  shooters  are  run  across,   or  Jacquard 
harness  used,  the  records  for  weaving  them 
should   not   be   confused   with   the   records 
of  plain  goods. 


III.   COMPUTING  THE  COST  OF 
WARPS 

79  Exhibit  B,  Summary  of  Warps 

80  This   form  is   a   summary   of   the   warps 
made    during   the   quarter.     Columns    Nos. 
1,  2,  and  3  should  show  the  quality  —  pat- 
tern —  width  of  each  fabric. 

81  Column  No.  4,  Warps  Made 

The  total  yards  of  warp  that  were  made 

82  for   each    fabric    should   be   obtained   from 
the    form    Exhibit    A,    Warp    Record.     An 
illustration  of  the  results  shown,  at  the  end 
of  the  quarter,  on  the  warp  record  for  No. 
900-1 15-36"  is  presented  at  Reference  No. 

83  119.     The  first  items  Reference  Nos.    121, 
122,    123,   and    124   are   not   considered   in 
compiling  this  exhibit,  for  they  were  frac- 
tional warps  included  in  the  inventory  at 
the   beginning  of   the   period.     (See   Refer- 
ence No.  99.) 

84  Column  No.  5,  Material  Used 

85  The  charge  for  material  should  be  based 
upon   the   actual   consumption   of   material 

14 


SILK     MILL     COSTS 


15 


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16  SILK     MILL     COSTS 

used.  If  that  is  an  unknown  quantity, 
the  material  required  (see  Exhibit  A,  Nos. 
7,  8,  9,  and  10)  should  be  used  as  a  basis 

86  for  determining  the  quantity.     If  the  quan- 
tity used  is  based  upon  the  required  amount, 
prove   the  total  weight   No.    20   (with  the 
ledger)   before    figuring    the   value    of    the 
material  used  for  warps. 

87  Silk,  Schappe,  and  Yarn  for  Warp 

88  When   silk,   schappe,  and   yarn   are   used 
for    making    warps,    the    form    Exhibit    A 
should  provide  a  column  like  No.  5  for  each. 

89  Column  No.  6,  Throwing 

90  Figure   the  cost  of  throwing  the  organ- 
zine  entered  in  column  No.  5  at  the  cost 
per  pound  paid  to  the  throwster. 

91  Column  No.  7,  Dyeing 

Figure  the  cost  of  dyeing  the  material 
entered  in  column  No.  5,  at  the  cost  per 
pound  paid  to  the  dyer. 

92  Column  No.  8,  Winding 

Figure  the  cost  of  winding  the  material 
entered  in  column  No.  5,  at  the  average 
cost  of  winding. 


SILK    MILL    COSTS  17 

93  Column  No.  9,  Warping 

Figure  the  cost  of  warping  at  the  labor 
cost  of  warping  the  warps  for  each  fabric, 
determined  as  illustrated,  Reference  No. 
236. 

94  Column  No.  10,  Nonproductive  Labor 

Figure  the  nonproductive  labor  to  be 
added  for  the  labor  charged  in  columns 
Nos.  8  and  9  of  each  fabric,  and  enter  it  in 
column  No.  10.  To  determine  the  per- 
centage see  Reference  No.  232. 

96  Column  No.  n,  Total  Cost 

Add  the  columns  Nos.  5,  6,  7,  8,  9,  and  10 
and  enter  the  sum  in  column  No.  11,  which 
should  be  the  total  cost. 

96  Column  No.  12,  Average 

Divide  the  total  cost,  column  No.  11,  by 
the  yards  of  warp  made,  column  No.  4,  for 
the  average.  Enter  in  column  No.  12  the 
average  per  100  yards  of  warp. 

7  Value  of  Warps  Used 

When  the  inventory  was  taken  on  Janu- 
ary 1,  1900,  the  warp  sheet,  Exhibit  A,  for 
quality  900-115-36"  (see  Reference  No. 


18  SILK     MILL     COSTS 

119),  had  four  warps  on  the  looms  that  were 
not  completed.  Add  the  percentage  for 
take-up  to  the  yardage  off  looms  and  deduct 
the  sum  from  the  original  length  of  the 
warp,  the  difference  is  considered  the  bal- 

98  ance  of  warp  still  on  the  loom.     The  yards 
woven  on  the  loom  is  taken,  but  it  does  not 
reduce   the   yards  of  warp.     The  value  of 
the    filling,    required    to    weave    the    yards 
woven   on   the   loom,    must   be    considered 
when  preparing  the  inventory. 

99  SUMMARY  OF  ALL  WARPS  ON  HAND  JANUARY  1,  1900 

100  900  -  115  -  36"  600  yards  @  $28.10  =  $  168.60 

101  900  -  114  -  24"  101  yards  @  $19.00  =  $     19.19 

102  900  -  114  -  2.24*  2110  yards  @  $37.00  =  $  780.70 

103  800  -    15  -  36'  1000  yards  @  $18.04  =  $  180.37 

104  700  -      6  -  27"  817  yards  @  $23.05  =  $  188.32 

106  Total  value  of  warps  in  inventory.     .     .     .  $1337.18 
(See  Reference  No.  107) 


SILK     MILL     COSTS  19 


106  SUMMARY  OF  ALL  WARPS  FOR  THE  QUARTER 

107  Inventory  of  warps  January  1,  1900.     .      .     .     $  1337.18 
(See  Reference  No.  105) 

108  Warps  made  as  per  warp  sheet $36979.92 

(See  Exhibit  B,  Item  27) 

109  Total $38317.10 

110  Warps  used  as  per  weaving  sheet      ....     $36539.59 
(See  Exhibit  C,  Item  29) 

111  Inventory  of  warps,  April  1,  1900     ....     $  1777.51 

112  SUMMARY  OF  WARPS  USED  DURING  THE  QUARTER 

113  Quality  900,  Pattern  115,  Width  36*. 

Inventory,  January  1,  1900,  600  yards        .      .  $     168.60 
(See  Reference  No.  100) 

114  Warps  made  during  the  quarter        ....  $  2359.26 
(See  Exhibit  B,  Item  13)  

115  Total $  2527.86 

116  Warps,  Inventory  at  closing        $    741.85 

(At  average  cost) 

117  Warps  used  during  quarter $  1786.01 

(See  Exhibit  C,  Column  6) 


20 


SILK     MILL     COSTS 


ILLUSTRATION  OF  WARP  RECORD 
119  Quality  900  -  115  -  36" 


120 

Numbers 
of 
Warps 

Yards 
of 
Warp 

Yards 
off 
Looms 

Record  for  Inventory 

Balance 
of  Warp 

Woven 
on  Loom 

121 

1170 

41 

39 

— 

— 

122 

1171 

152 

144 

— 

— 

123 

1174 

97 

92 

— 

— 

124 

1175 

310 

292 

— 

— 

600 

125 

1179 

500 

471 

— 

— 

126 

1180 

500 

470 

— 

— 

127 

1181 

500 

473 

— 

— 

128 

1194 

1000 

940 

— 

— 

129 

1195 

1000 

941 

— 

— 

130 

1196 

1000 

943 

— 

— 

131 

1210 

500 

471 

— 

— 

132 

1211 

1000 

408 

568 

40 

133 

1213 

1000 

370 

608 

37 

134 

1214 

1000 

— 

1000 

23 

135 

1215 

500 

— 

500 

— 

8500 

6054 

2676 

100 

Warps  in  work:  9100  yards. 
Balance  on  Looms:  2676  yards 
Quantity  used:  6424  yards. 


IV.   COMPUTING  THE  COST  OF 
WEAVING 

137  Exhibit  C,  Summary  of  Weaving 

138  This  is  a  summary  of  the  cloth  woven 
during  the  quarter.     In  column  No.  1  enter 
the    numbers    identifying    each    fabric.     (If 
desirable  the  colors  may  be  separated  from 
the  blacks.) 

139  Column  No.  2,  Yardage  Off  the  Looms 

The  total  yards  of  cloth  made  should  be 
obtained  from  the  warp  record,  Exhibit  A. 
An  illustration  of  the  results  shown  on  the 
warp  record  for  No.  900-115-36"  is  pre- 
sented at  Reference  No.  119.  The  total 
yards  off  the  looms,  of  each  fabric,  is  charged 
in  this  column  No.  2. 

140  Column  No.  3,  Warp  Used 

The  quantity  of  warp  used  should  be  ob- 
tained from  the  warp  record,  Reference  No. 
119.  From  the  total  yards  of  warps  charged 
to  the  warp  record,  deduct  the  balance 
still  on  the  looms,  the  difference  is  the  quan- 
tity of  warp  used.  This  should  be  entered 
in  column  No.  4. 

21 


22 


SILK     MILL     COSTS 


COMPUTING   THE   COST  OF  WEAVING 


(1) 

(2) 

(3) 

(7) 

(8) 

Texture 

Yard- 
age 
off    the 
Looms 

Warp  Used 

Twist- 
ing 

Filling  Used 

(21)   9001115136" 

6054 

(4) 

6424 

(6) 

27.76 

(6) 
1786.01 

38.54 

(9) 

256 

(10) 

3.25 

(ID 
832.00 

(22)   900|114|24" 

9001 

9501 

18.60 

1767.00 

38.25 

253 

3.25 

822.25 

(23)   900J  114|2.24" 

28819 

30608 

37.15 

11367.90 

305.80 

2450 

3.25 

8362.50 

(24)   800115  |36" 

76513 

80101 

18.25 

14618.25 

240.30 

4005 

3.40 

13617.00 

(26)   700|6|27" 

(26) 

29470 

30570 

22.90 

7000.43 

123.60 

2142 

3.10 

6640.20 

149,857 

157,204 

36,539.59 

746.49 

9106 

30,273.95 

(27) 

(28) 

(29) 

(30) 

(31) 

(32) 

SILK     MILL     COSTS 


23 


THE   TEXTURE     EXHIBIT   C 


(12) 

(13) 

(14) 

(15) 

(16) 

(17) 

(18) 

(19) 

(20) 

Throw- 
ing 
Tram 

Dyeing 

Wind- 
ing 

Weav- 
ing 

Picking 

Geieral 
Non- 
produc- 
tive 
Labor 

Mill 

Expenses 

Total 
Mill  Cost 

Aver- 
age 
per 
Yard 

76.80 

230.40 

115.20 

605.40 

60.54 

163.94 

586.32 

4495.15 

.7425 

75.90 

227.70 

117.00 

595.40 

89.31 

168.00 

585.12 

4485.93 

.4984 

735.00 

2205.00 

1102.50 

3836.27 

287.72 

1106.45 

4396  37 

33705.51 

1.1696 

1201.50 

2803.50 

1381.50 

3845.30 

769.06 

1247.23 

5958.54 

45682.18 

— 

642.60 

1071.00 

642.60 

1161.80 

290.45 

443.68 

2702.45 

20718.81 

— 

2731.80 

6537.60 

3358.80 

10,044.17 

1497.08 

3129.30 

14,228.80 

109,087.58 

(33) 

(34) 

(36) 

(36) 

(37) 

(38) 

(39) 

(40) 

24  SILK     MILL     COSTS 

141  Column  No.  5,  Rate  for  Warp 

The  average  cost  of  making  each  class 
of  warps  computed  on  the  Summary  of 
Warps,  Exhibit  B,  No.  12,  should  be  entered 
in  this  column  No.  5.  The  value  of  the 
warps  used  should  be  obtained  from  the 
summary.  (See  Reference  No.  117.) 

142  Column  No.  7,  Twisting 

The  cost  of  twisting  should  be  based 
upon  the  average  paid  for  100  yards  twisted 
on  the  looms.  (See  Reference  No.  240.) 

143  Column  No.  8,  Filling  Used 

If  the  actual  quantity  of  filling  prepared 
for  each  fabric  is  not  recorded,  the  charge 
for  filling  used  should  be  based  upon  the 
requirements,  entered  on  the  warp  records, 
Exhibit  A,  Nos.  13  and  14.  Before  extend- 
ing the  cost  of  filling  used,  prove  out  the 
total  weight,  Exhibit  C,  No.  31,  with  the 
consumption  shown  by  the  ledger  account 
and  the  inventories. 

144  Column  No.  12,  Throwing 

Charge  in  this  column  the  cost  of  throw- 
ing the  raw  silk  charged  in  column  No.  9, 
as  having  been  used  for  filling. 


SILK     MILL     COSTS  25 

145  Column  No.  13,  Dyeing 

Charge  in  this  column  the  cost  of  dyeing 
the  material  charged  in  column  No.  9,  as 
having  been  used  for  filling. 

146  Column  No.  14,  Winding 

Charge  in  this  column  the  cost  of  wind- 
ing and  quilling  the  filling  charged  in  col- 
umn No.  9. 

147  Column  No.  15,  Weaving 

Charge  the  cost  of  weaving,  increased 
by  the  nonproductive  labor  in  the  weaving 
department.  (See  Reference  No.  229.) 

148  Column  No.  16,  Picking 

Charge  in  this  column  the  cost  of  pick- 
ing all  the  cloth,  whether  or  not  it  is  in  the 
picking  room.  In  making  up  the  inven- 
tory, the  cloth  unpicked  can  be  considered 
in  order  to  prove  the  result. 

149  Column  No.  17,  Nonproductive  Labor 

In  this  column  charge  a  percentage  of 
the  totals,  Nos.  30,  35,  36,  and  37.  This 
percentage  should  be  based  upon  the  per- 
centage of  the  nonproductive  labor.  (See 
Reference  No.  232.) 


26  SILK     MILL     COSTS 

150  Column  No.  18,  Expense  Burden 

In  this  column  charge  a  percentage  to 
provide  for  mill  expenses.  If  the  expense 
burden  is  distributed  on  the  basis  of  labor 
and  material,  add  together  totals  Nos.  29,  30, 
32,  33,  34,  35,  36,  37,  and  38;  and  figure  the 

161  percentage  upon  the  sum.     If  the  expense 
burden  is  distributed  on  the  basis  of  pro- 
ductive labor,  add  totals  Nos.  30,  35,  36, 
and  37;  and  figure  the  percentage  upon  the 
sum. 

162  Column  No.  19,  Total  Cost 

Add  the  items  charged  against  each  fab- 
ric in  the  columns  for  the  details  of  the 
cost,  and  enter  the  sum  of  each  in  this  col- 
umn. The  grand  total,  No.  40,  should 
equal  the  cost  of  production  shown  by  the 
ledger  statement,  Reference  No.  378. 

163  Column  No.  20,  Average  Cost  per  Yard 

Compute  the  average  cost  of  each  fabric 
by  dividing  the  cost  in  column  No.  19 
by  the  yardage  in  column  No.  2.  Enter 
the  average  cost  of  each  fabric  in  column 
No.  20. 


SILK     MILL     COSTS  27 

164  Figuring  price  to  sell,  900  -  115  -  36*. 

156  Mill  cost,  exhibit  C  (20),  100  yards     ....     $74.25 

166  (If  100  yards  off  the  loom  will  finish  105  yards.) 

167  Finishing  105  yards  at  $.08 8.40 


158  Total  cost  to  produce  105  yards    ._....$  82.65 

159  Providing  10%  for  selling  expenses. 

160  Providing  10%  for  profit. 

161  100%  -  20%  =  80%. 

162  Multiply  $82.65  by  100  and  divide  the  result  by 

80  for  the  price  to  sell,  in  order  to  provide 
10%  for  selling  expenses,  and  make  10% 
profit $103.31 

163  Divide  $103.31  by  105  yards  for  the  price  to  sell 

per  yard $      .98£ 

164  How  to  Estimate  the  Cost  to  Produce 

166  After  the  material  required  to  make  a 
given  length  of  warp  has  been  computed, 
and  the  filling  required  to  weave  the  cloth 
is  known,  figure  the  cost  of  making  the 
goods  as  shown  in  the  illustration,  Refer- 
ence No.  193. 

166  Reference  No.  194.     The  cost  of  the  mate- 
rial should  include  all  expenditures  made  for 
the  material,  excepting  labor. 

167  Reference  No.  195.     The  quantity  of  raw 
silk  required  for  the  warp  should  be  charged 
at  the  purchase  price  of  the  grade  of  silk 
to  be  used. 

168  Reference  No.   196.     The  cost  of  throw- 

169  ing,  the  raw  silk  required  for  warp,  should 


28  SILK     MILL     COSTS 

be  charged  at  the  actual  cost  of  throwing 
the  grade  of  silk  to  be  used. 

170  Reference  No.  197.     The  cost  of  dyeing, 
the  weight  of  raw  silk  required  for  warp, 
should  be  charged  at  the  cost  shown  by  the 
dyer's  invoice. 

171  Reference  No.  198.     The  quantity  of  raw 
silk  required  for  the  filling  should  be  charged 
at  the  purchase  price  of  the  grade  of  silk  to 
be  used. 

172  Reference  No.   199.     The  cost  of  throw- 
ing, the  raw  silk  required  for  filling,  should 
be  charged  at  the  actual  cost  of  throwing 
the  grade  of  silk  to  be  used. 

173  Reference  No.  200.     The  cost  of  dyeing, 
the  weight  of  raw  silk  required  for  filling, 
should  be  charged  at  the  cost  shown  by  the 
dyer's  invoice. 

174  If  yarn  and  schappe  are  used  for  warp  or 
filling,  the  cost  of  each  required,  and  the  cost 
of  dyeing  each,  should  be  shown  separately. 

176  Reference  No.  201.  The  cost  of  material 
entered  here  should  include  the  entire  cost 
of  the  material  required. 

176  Reference  No.  202.  In  figuring  the  cost 
for  labor,  use  the  rates  shown  by  past  expe- 
rience. These  rates  should  be  taken  from 
the  statistical  record.  Reference  No.  220. 


SILK     MILL     COSTS  29 

177  Reference   No.   203.     Figure   the   cost  of 
winding  the  dyed  weight  of  the  organzine 
or  material  required  for  warp,  at  the  rate  of 
winding  that  grade  of  material. 

178  Reference   No.   204.     Figure   the   cost  of 
winding    the    dyed    weight    of    the    tram, 
or    material    required    for    filling,    at    the 
rate    of    winding    and    quilling    that   grade 
of  material. 

179  If  yarn  and  schappe  are  used,   the  cost 
of  winding  and  quilling,  or  preparing  it  for 
use  as  filling,  should  be  shown  separately. 

180  Reference   No.   205.     Figure  the   cost  of 
warping  the  length  and  ends  of  warp  upon 
the  basis  used  in  figuring  the  warping  on 
Exhibit  B. 

181  Reference   No.   206.     Figure  the   cost   of 
twisting  the  warp  on  the  loom  upon  the  basis 
used  in  figuring  the  twisting  on  Exhibit  C. 

182  Reference   No.   207.     Figure   the   cost   of 
weaving  the  estimated  yardage  off  the  loom 
at  the  rate  to  be  paid  plus  the  percentage 
required    for    nonproductive    labor    in    the 
weave  room. 

183  Reference   No.   208.     Figure   the   cost  of 
picking  the  estimated  yardage  off  the  loom 
at  the  estimated  cost  of  picking  the  grade 
of  goods. 


30  SILK     MILL     COSTS 

184  Reference    No.    209.     Add    the    total    of 
Reference  Nos.  203,  204,  205,  206,  207,  and 
208  to  obtain  the  total  productive  labor. 

185  Reference  No.   210.     Figure  the  nonpro- 
ductive labor  on  Reference  No.  209,  using 
the  percentage  shown  by  the  pay  roll  sum- 
mary, Reference  No.  232. 

186  Reference  No.  212.     Figure  the  provision 
for  mill  expenses  on  the  basis  used  in  compil- 
ing Exhibit  C. 

187  Reference    No.    213.     Add    the    total    of 
Reference  Nos.  201,  211,  and  212,  for  the 
mill  cost  of  the  estimated  yardage  off  the 
loom. 

188  Reference    No.    214.     Estimate    the    fin- 
ished   yardage    by    considering    the    results 
obtained  from  similar  grades. 

189  Reference   No.   214.     Figure   the   cost  of 
finishing  the  estimated  finished  yardage  at 
the  rate  to  be  paid  for  finishing. 

190  Reference    No.    215.     Add    the    total    of 
Reference  Nos.  213  and   214   for   the   cost 
of  the  goods  finished. 

191  Reference  No.  218.     Figure  the  price  to 
sell  as  shown. 

192  Reference  No.  219.     Divide  the  price  to 
sell  by  the  finished  yardage  for  the  average 
selling  price  per  yard. 


SILK     MILL     COST 


31 


193 


ILLUSTRATION 

ESTIMATING  THE  COST  TO  PRODUCE 


194  Figuring  the  Cost  of  Material 

196  Warp:    Silk  required. .  .40  Ibs.  @  $3.50    $140.00 

196  Throwing 40  Ibs.  @      .60        24.00 

197  Dyeing 40  Ibs.  @      .20          8.00 

198  Filling:  Silk  required  .  .35  Ibs.  @    3.00      105.00 

199  Throwing 35  Ibs.  @      .30         10.50 

200  Dyeing 35  Ibs.  @      .90        31.50 

201  Cost  of  Material $319.00 

202  Figuring  the  Cost  of  Labor 

203  Winding  organzine 40  Ibs.  @    $.10     $     4.00 

204  Winding  tram 70  Ibs.  @      .25         17.50 

205  Warping,  500  yards  9.85 

206  Twisting,  8970  ends 2.37 

207  Weaving,  478  yards @      .10        47.80 

208  Picking,  478  yards    @      .01          4.78 

209  Total  productive  labor 86.30 

210  Nonproductive  labor,  20% 17.26 

211  Cost  of  Labor  $103.56 

212  Provision  for  mill  exp.  (40%  of  labor)  .  .  41.42 

213  Mill  cost  (478  yards  off  loom) $463.98 

214  Estimated  478  yds.  will  finish  482  yards 

Cost  of  finishing  482  yards      .    @  $  .08  38.56 

216  Cost  of  482  yards  finished $502.54 

216  Provision  for  selling  expenses,  10% 

217  Provision  for  profit,  10% 

218  Price  to  sell  ($502.54  X  100)  ^  80  =  $628.17 

219  Price  to  sell,  average  per  yard $     1.30 


V.   PAY  ROLL 

220  Analysis  of  Pay  Roll 

The  pay  rolls  must  be  analyzed  according 
to  the  departments  of  manufacture,  and  a 
record  kept  of  the  production  of  each  classifi- 
cation. This  can  be  accomplished  by  group- 
ing the  operatives'  names  upon  the  pay-roll 
book,  according  to  the  classifications  occupy- 
ing their  time,  and  keeping  a  record  (in  the 

221  department)    of    the    shifts    made.     Adjust 
the  total  of  each  department  pay  roll  by 
deducting  the  amount  chargeable  to  other 
classifications,    and    adding    the    wages    for 
operatives  shifted  to  the  classification.     The 
following  summary  of  the  pay  roll  for  the 
quarter  will  show  the  classifications. 

222  SUMMARY  OF  PAY  ROLL 

223  Winding  Organzine $    831.22 

224  Winding  Tram $1667.33 

225  Quilling  Tram 1705.48  3372.81 

226  Warping 873.95 

227  Twisting 750.81 

228  Weaving,  Productive $8859.85 

229  Weaving,  Nonproductive 1184.32  10044.17 

230  Picking 1497.08 

231  Total $17370.04 

232  Nonproductive,  20%     3457.19 

233  Total  of  pay  rolls $20827.23 

32 


SILK     MILL     COSTS  33 

234  Winding  and  Quilling 

A  record  must  be  kept  of  the  silk  deliv- 
ered to  the  winders,  using  the  dyed  weight. 
The  cost  of  winding  is  based  upon  this  rec- 
ord, which  gives  a  questionable  rate  from 
week  to  week,  but  is  accurate  for  the  whole 
period  when  the  inventories  are  considered. 

235  If  piece  rates  are  paid  for  winding,  it  is 
unnecessary  to    keep    this    record,   for    the 
quantities  can  be  proven  with  the  general 
control. 

236  Warping,  Piece  Rates 

237  Where  warpers  are  paid  for  piece  work 
the  rates  must  be  increased  to  provide  for 
the  nonproductive  labor  and  a  charge  must 
be  made  for  beaming. 

238  When  warpers  are  day  workers,  a  record 
must  be  kept  of  the  time  spent  warping  and 
beaming  the  warps  for  each  quality-pattern- 
width.    The  record  for  each  warper  may  be 
entered  in  a  book;  or  a  record  may  be  kept 
of  all  the  warpers  showing  the  time  occupied 
on  each  quality-pattern-width. 

239  The  warp  room  summary  must  show  the 
number    of   hours    spent    on   each    quality- 
pattern-width.     Divide  the  total  wages    of 
the  warping  department,  by  the  total  pro- 


34  SILK     MILL     COSTS 

ductive  hours;  for  the  rate  per  hour  for  that 
quarter;  and  multiply  it  by  the  hours  spent 
on  each  quality-pattern-width  for  the  cost 
of  warping  each.  To  get  the  rate  for  100 
yards,  divide  the  cost  of  twisting  each  line 
by  the  hundreds  of  yards  of  each  warp  made. 

240  Twisting 

241  If  the  twisters  are  paid  piece  rates,  smashes 
should  be  charged  to  nonproductive.     The 
piece  work  rates  for  the  quarter  should  be 
increased  by  a  percentage  to  provide  for  the 
nonproductive  labor. 

242  If  the  twisters  are  paid  day  wages,  a  rec- 
ord must  be  kept  of  the  time  occupied  twist- 
ing each  quality-pattern-width.     The   total 
pay  roll  of  the  twisters  should  be  divided 
by  the  productive  hours  of  the  quarter,  to 

243  obtain  the  rate  per  hour  for  twisting.    Mul- 
tiply the  rate  by  the  hours  spent  on  each 
line   for   the    cost   of   twisting.     To   obtain 
the  rate  for  100  yards  of  each  line,  divide 
the  wages  by  the  hundreds  of  yards  of  each 
line  actually  twisted  on  the  looms  during 
the  quarter. 

244  Weaving 

246      If  piece  rates  are  paid  for  weaving,  the 
rates  of  each  line  must  be  increased  by  a 


SILK     MILL     COSTS  35 

percentage  to  provide  for  the  weaving  non- 
productive labor. 

246  If  the  weavers  are  paid  part  piece  work 
rates   and   a   few   day   workers,    figure   the 
wages   of  the   day  workers  at   the  regular 
piece  rates  and  add  the  excess  to  the  non- 
productive labor. 

247  If  the  weavers  are  day  workers  a  record 
must   be   kept   of   the   wages   expended   for 
weaving    each    quality-pattern-width.     The 
total  productive  wages  of  each  should  be 
increased  by  a  percentage  for  non-produc- 
tive labor  in  the  weaving  room. 

248  Picking 

249  If  the  pickers  are  paid  day  wages,  a  rec- 
ord should  be  kept   of  the  time   occupied 
picking  each  line,  in  order  to  determine  the 
rate  for  each. 


VI.   INVENTORIES 

250  Inventory  of  Material 

261  The  inventory  of  material  should  be  sep- 
arated into  three  divisions:  (a)  Raw  mate- 
rial;  (6)  Goods  on  the  looms;  and  (c)  Goods 
in  the  finishing  department. 

262  Inventory  of  Raw  Material 

253  The  inventory  of  raw  material  should  in- 
clude all  the  raw  silk,  yarn,  etc.,  in  bales  and 
cases;  silk  at  the  throwsters;  stock  at  the 
dyers;  in  the  store  rooms,  and  in  skeins, 
on  spools,  quills,  cops,  and  frames,  in  all 
departments. 

264  In  compiling  this  inventory,  the  value  of 
each  lot  should  be  analyzed  to  show  the  cost 
of  the  raw  stock,  the  cost  of  throwing,  the 
cost  of  dyeing,  and  the  cost  of  winding. 

265  When    preparing    the    inventory  of    raw 
material,  group   the   lots   according  to   the 
following : 

256      Silk  in  Bales:  Figure  the  cost  of  raw  silk. 

267  Silk  at  Throwsters:   Figure  the  cost  of  the 
silk. 

268  Silk  at  Dyers:   Figure  the  cost  of  the  silk, 
and  throwing. 

36 


SILK     MILL     COSTS  37 

259  Yarn  at  Dyers:  Figure  the  cost  of  the  yarn. 

260  Silk  on  Spools:    Figure  the  cost  of  the 
raw  silk,  throwing,  dyeing,  and  winding. 

261  Tram  on  Quills:  Figure  the  cost  of  the  raw 
silk,  throwing,  dyeing,  winding,  and  quilling. 

262  Yarn  on  Spools:   Figure  the  cost  of  yarn, 
dyeing,  and  winding. 

263  Yarn  on  Quills:    Figure  the  cost  of  yarn, 
dyeing,  winding,  and  quilling. 

264  Inventory  of  Goods  on  the  Looms 

265  The    inventory    of    goods    on    the    looms 
should  include  the  value  of  the  warps  on 
the  looms,  the  prorated  cost  of  twisting  the 
balance  of  warps  on  the  looms,  the  value  of 
the   filling  required   to   weave   the   yardage 
woven  on  the  looms,  the  cost  of  throwing 
tram   included    in   the  filling,    the   cost   of 
dyeing  the  filling,  the  cost  of  winding  the 
filling,  and  a  percentage  for  nonproductive 
labor.     The  total  of  the  above  should  be 
the  value  of  the  goods  on  the  looms. 

266  Figuring  Inventory  of  Goods  on  Looms 

To  figure  the  value  of  the  goods  on  the 
looms,  take  the  total  yards  of  warp  still  on 
the  looms,  Exhibit  A,  Item  24,  and  the  total 
yards  woven  on  the  looms,  Exhibit  A,  No. 
25,  of  each  fabric.  Make  a  summary  of 
warps  on  the  looms  (at  the  time  of  taking 


38  SILK     MILL     COSTS 

the  inventory),  on  the  form  Exhibit  C,  and 
in  the  same  manner  as  shown  on  Exhibit  C. 

267  Column  No.  1.     List  the  fabrics  the  same 
as  if  the  goods  were  completed. 

268  Column  No.  2.   In  this  column  put  the  total 
yards  of  each  fabric  woven  on  the  looms. 

269  Column  No.  3.     In  this  column  enter  the 
total  yards  of  each  kind  of  warp  still  on  the 
looms,   and  figure  the  value  of  the  warps 
(5)  at  the  rates  taken  from  Exhibit  B. 

270  Column    No.    7.     In    this    column    enter 
the  prorated  cost  of  twisting,  the  balance  of 
the  warps  on  the  looms. 

271  Column  No.  8.     In  this  column  enter  the 
filling  required  to  weave  the  yardage  woven 
on  the  looms.     (Column  No.  2.) 

272  Column    No.    12.     In   this  column   enter 
the  cost  of  throwing  tram  entered  as  being 
used  in  column  No.  9. 

273  Column  No.    13.      In   this   column   enter 
the   cost   of   dyeing   the   filling   entered   as 
having  been  used  in  column  No.  9. 

274  Column  No.  14.     In  this  column  enter  the 
cost  of  winding  the  filling  entered  as  having 
been  used  in  column  No.  9. 

275  Column   No.    17.     In   this   column   enter 
the  percentage  that  should  be  provided  for 
nonproductive  labor  for  totals  Nos.  30  and 
35;   twisting  and  winding. 


SILK     MILL     COSTS  39 

276  Column   No.    19.     In   this   column  enter 
the  total  value  of  the  goods,  which  will  be 
the  sum  of  the  amounts  entered  in  columns 
Nos.  6,  7,  11,  12,  13,  14,  and  17. 

277  The  grand  total  No.  40  should  be  the  total 
value  of  the  goods  on  the  looms  at  the  time 
of  taking  the  inventory. 

278  Inventory  of  Finishing  Departments 

279  The  inventory  of  the  finishing  departments 
is  not  absolutely  necessary  in  order  to  figure 
the  costs.     If  it  is  convenient  to  take  an  in- 
ventory of  this  department,  it  should  be  done. 

280  The  cost  of  picking  the  goods  not  picked 
will  be  a  deduction  from  the  picking  wages, 
on  Exhibit   C.     (The  cost  of  weaving  for 
the  quarter.) 

281  Taking  Inventory  of  Raw  Material 

282  A  convenient  method  of  taking  the  inven- 
tory of  the  raw  material  is  to  print  slips 
calling  for  the  following  information: 

283  (a)  Date  of  inventory, 

284  (b)  Number  of  material, 

285  (c)  Descriptions  of  material, 

286  (d)  How  dyed, 

287  (e)  Dyed  weight, 

288  (/)    Raw  weight,  and 

289  (g)  How  prepared   (Bales,  skeins,  spools, 
quills,  etc.). 


40  SILK     MILL     COSTS 

290  These  slips  should  be  made  up  in  pads  and 
during  the  days  prior  to  inventory  taking, 
the  employees  weighing  the  material  should 
put  slips  upon  all  material,  so  that  when  the 
time  comes  for  taking  the  inventory,  every- 
thing in  the  mill  will  be  marked.     At  the 
time  appointed,   each   foreman   should   col- 
lect the  slips  in  his   department,   and   the 
inventory  can  be  made  up  from  the  slips. 
The    slips    should    be    sorted    according    to 
classifications  before  listing. 

291  Taking  Inventory  of  Goods  on  Looms 

292  A  convenient  method  of  taking  the  inven- 
tory of  the  goods  on  the  looms,  is  to  print 
slips  calling  for  the  following  information: 

293  (a)  Date  of  inventory, 

294  (6)  Fabric  on  loom, 

296  (c)  Quality-pattern-width, 

296  (d)  Loom  number, 

297  (e)  Warp  number, 

298  (/)   Cuts  made, 

299  (g)  Yardage  of  cuts, 

300  (h)  Take  up, 

301  (i)    Length  of  warp, 

302  (j)    Balance  of  warp  on  loom,  and 

303  (k)  Yards  woven  on  the  loom. 

304  These   slips   should   be   executed   by   the 
weavers,  just  before  closing,  and  they  should 


SILK     MILL     COSTS  41 

be  left  on  the  looms.  The  taking  the  in- 
ventory would  mean  collecting  the  slips  and 
verifying  the  slips,  by  comparing  them  with 
the  warp  records. 

305  Summary  of  Inventory 

306  When  the  inventory  is  completed  a  sum- 
mary should  be  made  like  the  following: 

307  INVENTORY,  JANUARY  1,  1900 

308  Raw  Material:       Organ.,  10701  Ibs.    $37453.50 

309  Tram,  3210  Ibs.  .  9630.00 

310  Yarn,  8715  Ibs.  .  3486.00 

311  Throwing 963.00 

312  Dyeing  6660.37 

313  Winding 51.83 

314  Nonpro.  labor.  . .  10.32 

316  Total $58255.02 

316  Goods  on  Looms:   Warps  Ref.  No.  107  $  1337.18 

317  Filling 311.52 

318  Throwing   27.61 

319  Dyeing 69.10 

320  Wind'g  &  quiU'g.  35.14 

321  Twisting 13.95 

322  Nonpro.  labor. . .  9.28 

323  Total $  1803.78 

324  Total  Material  and  Labor $60058.80 

326  Finishing  Departments:  Picking  Rm.    $  3605.11 

326  Finishers  . .         4999.70 

327  Total $  8604.81 

328  Total  Inventory  of  Mill $68663.61 


VII.  RECORDS 


329  Finished  Goods 

330  If  the  finished  yardage  is  not  compiled 
on  the  warp  record,  a  record  of  the  finished 
yardage  should  be  kept  in  some  form  in 
order   to   determine   the   percentage   of   in- 
crease  or   decrease   on   the   finished   goods. 
The  following  record  is  convenient,  when  a 
sheet  is  used  for  each  quality-pattern-width. 


331 

332  900  -  115  -  36" 


FINISHED  GOODS  BOOK 


333 

Piece 
Numbers 

Finished 
Yards 

Mill 
Cut  No. 

Yards 
Off  Loom 

334 

Brought 
Forward 

5846 

— 

5792 

335 

17612 

51 

4127 

52 

336 

17613 

53 

4386 

54 

337 

17614 

50 

4092 

51 

338 

17801 

52 

4095 

53 

339 
340 

17805 

51 

4788 

52 

6103 

6054 

341  Finishing 

When  the  goods  are  finished,  the  finishing 
department  should  be  operated  as  a  sep- 
arate institution,  and  the  cost  per  yard 


42 


SILK     MILL     COSTS  43 

determined  according  to  the  conditions  and 
requirements  of  the  business. 

342  Purchase  Journal 

Arrange  the  purchase  journal  so  that  it 
will  provide  columns  for  the  following  rec- 
ords of  material  purchased: 

343  (a)  Organzine,  Weight. 

344  (6)   Organzine,  Value. 
346      (c)  Tram,  Weight. 

346  (d)  Tram,  Value. 

347  (e)  Yarn,  Weight. 

348  (/)   Yarn,  Value. 

349  (h)  Schappe,  Weight. 

360  (i)   Schappe,  Value. 

361  (j)   Throwing  Organzine,  Weight. 
352       (k)  Throwing  Organzine,  Cost. 

363  (I)    Throwing  Tram,  Weight. 

364  (ra)  Throwing  Tram,  Cost. 

366  (ri)  Dyeing  Organzine,  Weight. 

356  (o)  Dyeing  Organzine,  Cost. 

357  (p)  Dyeing  Tram,  Weight. 

358  (q)   Dyeing  Tram,  Cost. 
369  (r)    Dyeing  Yarn,  Weight. 

360  (s)    Dyeing  Yarn,  Cost. 

361  (t)    Piece  Dyeing. 

362  The  best  way  to  accomplish  this  is  to  have 
a  material  column  upon  the  old  purchase 


44  SILK     MILL     COSTS 

journal,  and  keep  a  sub-analysis  book  for 
the  material,  with  the  columns  shown  as 
above. 

363  General  Ledger 

364  The    general     ledger    should     have     the 
accounts  planned  so  that  the  statement  of 
the  mill,  for  the  quarter,  can  be  made  by 
simply   arranging   the   balances   of   the   ac- 

365  counts,  entered  on  the  trial  balance.     The 
final  statement  of  the  mill  should  be  pre- 
pared like  the  illustration  shown,  Reference 
No.  369. 

366  To  determine  the  percentage  of  the  sell- 
ing expenses  to  the  sales,  divide  the  expenses, 
Reference  No.  385,  by  the  sales,  Reference 
No.  387. 

367  If  the  distribution  of  mill  expenses  is  to  be 
based  upon  the  labor  cost,  divide  the  mill 
expenses,  Reference  No.  375,  by  the  labor, 
Reference   No.  374,  to  determine  the   per- 
centage to  be  added  for  mill  expenses. 

368  If  the  distribution  of  mill  expenses  is  to 
be  based  upon  the  cost  of  labor  and  mate- 
rial, divide  the  mill  expenses  by  the  differ- 
ence between   the   cost  of  the   production, 
Reference  No.  380,  and  the  mill  expenses, 
Reference     No.     375,     to     determine     the 


SILK     MILL     COSTS  45 

percentage  to  be  added  to  the  total  cost  for 
mill  expenses. 

369  STATEMENT  MADE  FROM  LEDGER  ACCOUNTS 

370  Mill  Inventory,  January  1,  1900 $  68663.61 

371  Purchase  of  Material 58401.22 

372  Throwing  Account 9411.80 

373  Dyeing  Account  (Not  Piece  Dyeing) 5892.50 

374  Pay  Roll  for  the  quarter 20827.23 

375  Mill  Expenses 14228.80 

376  Total   $177425.16 

377  Mill  Inventory  April  1,  1900 68337.58 

378  Cost  of  Production  $109087.58 

379  Finishing  Account  (Includes  Piece  Dyeing) 8401.30 

380  Total  Mill  Cost $117488.88 

381  Inventory  of  Finished  Goods,  January  1    201807.60 

382  Total   $319296.48 

383  Inventory  of  Finished  Goods,  April  1 180742.30 

384  Cost  of  Sales $138554.18 

385  Selling  Expenses    13682.71 

386  Profit  for  the  quarter 27932.85 

387  Net  Sales  for  the  quarter $180169.74 

388  Weights  on  General  Ledger 

The  general  ledger  accounts  should  show 
the  weights  of  silk,  yarn,  and  schappe;  and 
the  weights  of  throwing  and  dyeing.  It 
will  facilitate  matters  when  you  desire  to 
prove  the  cost  records,  and  also  provide  a 
control  of  the  material  used. 


46  SILK     MILL     COSTS 

389  Final  Summary 

If  a  final  summary  is  made  of  the  results, 
the  various  classifications  can  be  verified  in 
detail.  To  make  this  summary,  add  to  the 
analysis  of  the  inventory  at  the  beginning, 
the  purchases  of  each  classification,  the 
analysis  of  the  pay  roll  for  the  quarter,  and 
the  total  expenses.  Deduct  the  analysis 
of  the  cost  of  making  the  warps  from  the 
items  of  the  classifications.  Add  the  total 
cost  of  warps  to  the  inventory  of  warps  at 
the  beginning  and  deduct  the  value  of  warps 
used.  Deduct  the  items  of  the  analysis 
of  the  cost  of  weaving  from  the  various 
classifications,  and  the  balance  of  each  should 
be  the  inventory  at  the  end  of  the  period. 
(For  illustration,  see  Reference  Nos.  414 
and  418.) 


SILK     MILL     COSTS 


47 


390 


FINAL  SUMMARY  OF  MANUFACTURING  ACCOUNT 


391 

Inventory 
January  1 

Purchases 
Wages  and 
Expenses 

Cost  of 
Making 
Warps 
Exhibit  B 

Cost  of 
Weaving 
Exhibit  C 

Inventory 
April  1 

392  Organzine  .  . 

37,453.50 

27,657.16 

28,295.00 

_ 

36,815.66 

393  Tram    

9,940.52 

30,744.06 

— 

30,273.95 

10,410.63 

394  Yarn  

3,486.00 

— 

— 

— 

3,486.00 

396  Throwing 

Organzine  .  . 

566.31 

5,001.70 

4,848.00 

— 

720.01 

396  Throwing 

Tram 

424.30 

4,410.10 



2,731.80 

2,102.60 

397  Dyeing 

Organzine  .  . 

1,873.95 

2,100.05 

2,012.50 

— 

1,961.50 

398  Dyeing  Tram 

4,855.52 

3,792.45 

— 

6,537.60 

2,110.37 

399  Twisting  .  .  . 

13.95 

750.81 

— 

746.49 

18.27 

400  Winding 

Organzine  .  . 

51.83 

831.22 

646.40 

— 

236.65 

401  Winding 

Tram 

35.14 

3,372.81 

3,358.80 

49.15 

402  Warps  

1,338.18 



36,539.59 

1,778.51 

403  Warping  .  .  . 

— 

873.95 

873.95 





404  Weaving  .  .  . 

— 

10,044.17 



10,044.17 



406  Picking  .... 

— 

1,497.08 



1,497.08 



406  Nonproduc- 

tive     

19.60 

3,457.19 

304.07 

3,129.30 

43.42 

407  Mill  Expense 

— 

14,228.80 

— 

14,228  80 

— 

408       Totals  .  .  . 

60,058.80 

108,761.55 

109,087.58 

59,732.77 

(415}  (417) 

409  Charged  warps     36,979.92 

(416) 

410  Inventory,  January  1 60,058.80 

411  Purchases,  etc.     See  Reference  No.  415 108.761.55 

412  Total 168,820.35 

413  Cost  of  Product.     See  Reference  No.  417 109.087.58 

414  Difference  and  Inv't'y  Apr.  1.  See  Ref.  No.  418         59,732.77 


(418) 


48  SILK     MILL     COSTS 

419  Raw  Silk 

420  All    calculations    should    be    based    upon 
raw  silk.     This  does  not  mean  that  records 
should  not  be  kept  of  dyed  weights.     The 
dyed  weight  is  very  essential  in  keeping  a 
proper  control  upon  the  consumption. 

421  If  it  is  not  possible  to  keep  a  record  of 
the  silk  prepared  and  used  for  each  line, 
the  amount  required  can  be  used  in  figuring 
the  cost.     If  the  amount  required  does  not 
equal  the  consumption  shown  by  the  ledger 
account,  it  must  be  increased  or  decreased 
proportionately,  in  order  to  make  it  equal 
the  amount  of  raw  silk  actually  used. 

422  Yarn 

The  quantity  of  yarn  used  is  generally 
based  upon  the  amount  computed  to  be 
required  to  produce  the  cloth.  If  the  quan- 
tity figured  on  the  cost  sheets  exceeds  the 
quantity  actually  consumed,  the  quantity 
charged  against  each  grade  of  cloth  must 
be  reduced  proportionately. 

423  Raw  Silk  Sent  to  Throwsters 

Letters  ordering  silk  to  the  throwster  can 
be  arranged  so  that  the  order  will  be  exe- 
cuted in  duplicate,  and  the  copy  put  in  a 


SILK     MILL     COSTS  49 

binder,  for  a  record  of  the  silk  at  the 
throwsters;  until  the  throwster's  delivery  is 
checked  off,  when  the  copies  of  the  letters 
can  be  removed  from  the  binder  and  filed 
permanently. 

424  Silk  at  Dyers 

Letters  ordering  silk  dyeing  can  be 
arranged  so  that  the  order  will  be  executed 
in  duplicate,  and  a  copy  filed  until  the 
dyer's  delivery  is  reported. 

426  Stock  Cards 

Stock  cards  should  be  kept  for  material. 
There  should  be  a  card  for  each  lot,  and  the 
record  of  deliveries  should  show  the  dis- 
position of  the  material,  in  a  manner  that 
can  be  checked  up  with  the  next  succeeding 
record  of  the  material. 

426  Silk  Used  for  Warps 

A  record  can  be  made  of  the  raw  silk  num- 
bers on  the  warp  ticket,  when  the  warp  is 
made.  This  will  facilitate  matters  when  it 
is  desirable  to  check  up  a  particular  lot  of 
silk. 

427  Warp  Blanket 

Where  the  employee  is  paid  by  the  piece, 
a  warp  blanket  can  be  used.  It  is  per- 


50  SILK     MILL     COSTS 

forated  and  contains  a  loom  ticket,  warpers' 
ticket,  beamers'  ticket,  and  tickets  for  the 
cuts.  The  ticket  for  each  cut  has  three 
parts:  (1)  weavers'  ticket;  (2)  pickers' 
ticket;  and  (3)  piece  ticket.  An  arrange- 
ment of  this  character  insures  correct  rec- 
ords because  the  numbers  are  printed  upon 
the  tickets. 

428  Loom  Book 

A  convenient  method  of  keeping  a  record 
of  the  cuts  is  to  have  a  weave  book  on  each 
loom,  and  enter  the  cuts  in  the  loom  book 
after  inspection;  then  return  the  book  to 
the  loom.  When  the  last  cut  is  made  the 
total  yards  can  be  footed  and  entered  upon 
the  warp  records. 

429  Cut  Ticket 

It  is  sometimes  convenient  to  combine 
the  cut  ticket,  pickers'  ticket,  and  piece 
ticket.  Printing  the  numbers  on  the  tickets 
insures  against  errors. 

430  Operatives'  Pay  Book 

When  operatives  are  paid  piece  rates, 
each  operative  should  have  a  pay  book, 
and  the  piece  ticket  should  be  entered  in 


SILK     MILL     COSTS  51 

it.     The  sum  of  the  entries  should  be  the 
pay  of  the  operative. 

431  Verifying  Piece  Work 

When  departments  are  paid  by  piece  work, 
the  tickets  should  be  sent  to  the  office  and 
entered  in  a  record  kept  of  the  work  in  each 
department.  When  this  is  done  the  total, 
entered  in  the  book  for  the  department, 
should  equal  the  wages  paid  for  the  pro- 
ductive labor  in  the  department. 

432  Average  the  Labor  Costs 

When  day  wages  are  paid  in  operating 
departments,  the  average  labor  cost  of  each 
process,  for  each  pay,  should  be  made  a 
matter  of  record.  If  this  is  done,  the  rec- 
ord of  past  performances  will  be  an  incen- 
tive to  improvement,  and  also  show  what 
is  possible  under  favorable  conditions.  In 
which  case  it  is  advisable  to  adopt  every 
means  of  promoting  the  favorable  conditions. 
In  making  this  record,  the  book  should  be 
arranged  so  that  each  average  is  compared 
with  the  average  of  previous  years.  A 
convenient  method  is  to  provide  a  page  for 
each  process,  with  fifty-two  lines  on  the 
page,  and  two  columns  for  each  year.  In 


52  SILK     MILL     COSTS 

the  first  column,  enter  the  quantity,  and  in 
the  next  column,  enter  the  average,  for  one 
week. 

433  Jacquard  Looms 

Two  accounts  should  be  kept  on  the 
ledger  for  harness  and  designs,  if  Jacquards 
are  used. 

434  (a)  Jacquard  harness  and  designs, 
436       (6)   Plain  harness  and  designs. 

436  In  which  case  a  special  column  should  be 
provided  on  the  form  Exhibit  C,  for  "  Har- 
ness and  Designs,"  and  a  special  distribu- 
tion made.     The  cost  of  Jacquards  should 
be  distributed  over  the  fabrics  made  with 
Jacquards   and   the    cost    of   plain   harness 
distributed  over  the  fabrics  made  with  plain 
harness. 

437  Piece  Dyeing 

Piece  dyeing  should  not  be  confused  with 
the  other  dyeing,  because  it  is  part  of  the 
cost  of  finishing  and  should  be  included  in 
finishing  account  or  kept  in  a  separate 
account  on  the  ledger. 

438  Dyeing 

When  dyeing  is  done,  the  dye-house  must 
be  operated  as  a  separate  institution.  The 


SILK     MILL     COSTS  53 

dyeing  should  be  classified  as  (a)  piece  dye- 
ing, and  (6)  skein  dyeing.  A  slip  should 
be  prepared  so  that  the  dyer  can  make  a 
record  of  the  dyestuffs  used  by  kettles.  The 
form  should  provide  for  a  record  of  the 
material  to  be  dyed  and  the  dyestuffs  used. 
The  reports  for  kettles  can  be  grouped  by 
colors,  styles,  or  in  any  manner  that  is 
desired,  and  the  cost  figured  on  a  basis  of 
pounds  dyed. 


VIII.   PROVING  THE  RESULTS 

Proof  of  Accuracy 

439  In  order  to  prove  the  charges  made  for 
material  and  wages  on  the  summary  of  the 
cost  of  making  the  warps,  Exhibit  B,  and 
the  summary  of  the  cost  of  weaving,  Exhibit 
C,   consider  the  inventories  for  the  begin- 
ning and  end  of  the  period,  and  reconcile 
the   expenditures   for   the   period   with   the 
charges  made  to  the  cost  sheets. 

440  Classification  of  Materials 

The  material  can  be  classified  as  organ- 
zine,  tram,  yarn,  and  schappe,  or  as  differ- 
ent grades  of  each,  without  making  any 
more  work,  and  each  can  be  proven  by  con- 
sidering the  inventories  and  the  purchases. 
It  is  advisable  to  classify  the  material  ac- 
cording to  grades  and  prove  out  each;  then 
any  difference  can  be  adjusted  before  clos- 
ing the  summary  of  warps,  Exhibit  B,  and 
the  summary  of  weaving,  Exhibit  C. 

441  THROWING 

442  Inventory  Throwing,  Reference  No.  311   $963.00 

443  Inventory  T.  Tram,  Reference  No.  318 27.61 

444  Throwing  invoices  as  per  Voucher  Record,  Ref- 

erence No.  372 9411.80 

445  Total   $10402.41 

54 


SILK     MILL     COSTS  55 

Brought  forward $10402.41 

446  Throwing  Organ.,  Exhibit  B,  No.  22     $4848.00 

447  Throwing  Tram,  Exhibit  C,  No.  33  . .    2731.80 

448  Total  charged  to  cost  sheets 7579.80 

449  Balance  should  be  inventory  at  closing    $2822.61 


450  DYEING 

451  Inventory,  Raw  Material,  January  1,  Reference 

No.  312 $6660.37 

452  Inventory,  on  looms,  January  1,  Reference  No. 

319 69.10 

453  Dyeing  invoices  as  per  voucher  register,  Refer- 

ence No.  373    5892.50 

454  Total   $12621.97 

455  Dyeing  Organ.,  Exhibit  B,  No.  23 $2012.50 

456  Dyeing  Filling,  Exhibit  C,  No.  34  . . .   6537.60 

457  Total  charged  to  cost  sheets 8550.10 

458  Balance  should  be  inventory  at  closing $4071.87 


459  WINDING  ORGANZINE 

460  Inventory  January  1,  Reference  No.  313  $51.83 

461  Pay  roll  for  period,  Reference  No.  223 831.22 

462  Total   $883.05 

463  Deduct,  charges  to  cost  sheet,  see  Exhibit  B, 

No.  24 646.40 

464  Balance  should  be  inventory  at  closing    $236.65 

465  WINDING  FILLING 

466  Inventory  January  1,  Reference  No.  320 $35.14 

467  Pay  roll  for  period,  Reference  No.  225 3372.81 

468  Total   $3407.95 

469  Deduct,  charges  to  cost  sheet,  see  Exhibit  C, 

No.  35  3358.80 

470  Balance  should  be  inventory  at  closing $49.15 


56  SILK     MILL     COSTS 

471  TWISTING 

472  Inventory,  January  1,  Reference  No.  321    ....  $13.95 

473  Pay  roll  for  period,  Reference  No.  227 750.81 

474  Total   $764.76 

475  Deduct,  charges  to  cost  sheets,  see  Exhibit  C, 

No.  30 746.49 

476  Balance  should  be  inventory  at  closing    $18.27 

477  WARPING  WAGES 

478  The  warping  wages  in  the  summary  of  the  pay  roll  for 
the  quarter,  Reference  No.  226,  should  equal  the  warping 
charged  against  Exhibit  B,  No.  25. 

479  WEAVING  WAGES 

480  The  weaving  wages  on  the  summary  of  the  pay  roll  for 
the  quarter,  Reference  No.  228,  should  equal  the  weaving 
charged  against  Exhibit  C,  No.  36. 

FINAL  PROOF 

481  The  total  of  the  summary  of  weaving,  Exhibit  C,  No.  40, 
should  equal  the  total  mill  cost  shown  on  the  statement 
made  from  the  ledger,  Reference  No.  378. 


IX.   THROWING 

482  Throwing  Mill 

483  The  throwing  mill  must  in  all  cases  be  en- 
tirely separated  from  the  weaving  mill,  and 
operated  as  a  separate  institution.    This  is  a 
very  simple  proposition  when  the  expense  of 
power  and  rent  are  distributed  upon  the  basis 
described,  Reference  Nos.  530  and  541. 

484  In  this  illustration  there  are  only  two  clas- 
sifications:    Organzine    and    Tram,    but   in 
actual  practise  the  silk  is  classified  accord- 
ing to  the  different  grades  of  each. 

486  The  cost  system  for  the  throwing  mill 
consists  mainly  of  arranging  the  pay  rolls, 
and  keeping  a  record  of  the  weights  accord- 
ing to  the  classifications  of  the  production. 
As  far  as  possible,  the  wages  of  the  various 
classifications,  in  the  various  departments, 
are  separated  so  that  the  cost  of  each  classi- 
fication can  be  determined.  The  plan  is 
not  to  compile  the  cost  of  each  particular 
lot  of  silk,  but  to  figure  the  cost  of  each 
operation  or  group  of  operations,  where  the 
latter  is  advisable. 

486  The  idea  is  to  figure  the  labor  cost  of 
each  classification  according  to  the  entire 
57 


58  SILK     MILL     COSTS 

production,  of  that  classification  for  the 
quarter,  and  thus  afford  a  means  of  figuring 
the  cost  of  the  entire  production  of  each 
classification,  for  the  quarter. 

487  The  cost  for  a  pay  roll  may  be   inaccu- 
rate, but  when  the  inventories  are  consid- 
ered, the  costs  will  be  adjusted  by  the  law 
of  averages. 

488  Preparing  the  Pay  Rolls 

The  pay  rolls  should  be  prepared  by 
grouping  the  employees  according  to  the 
classifications  of  the  work  occupying  their 
time.  When  the  foreman  shifts  an  opera- 
tive from  one  classification  to  another,  he 
should  make  a  record  of  the  shift.  The 
shifts  are  reported  to  the  office,  and  when 
the  pay  roll  is  made  up  for  that  period,  the 
total  pay  roll  for  each  classification  is  deter- 
mined by  footing  the  operatives  grouped 
under  the  classification.  Allowances  should 
then  be  made  for  the  shifts.  The  summary 
of  the  pay  roll  should  then  be  made,  and 
entered  in  the  statistical  record,  Reference 
Nos.  507,  508,  and  509. 

489  The  pay  of  employees  operating  frames 
of  different  classifications  should  be  divided 
among  the  classifications.     If  half  the  frames 


SILK     MILL     COSTS  59 

are  one  classification  and  the  other  half 
another,  half  the  pay  should  be  charged 
against  each. 

490  Statistical  Record 

491  The  statistical  record  should  provide  col- 
umns for  the  following: 

492  (a)  Spinning  Organzine, 

493  (b)  Spinning  Tram, 

494  (c)  Doubling  Organzine, 
496       (d)  Doubling  Tram, 

496  (e)  Reel  Mills,  Organzine, 

497  (f)  Reel  Mills,  Tram, 

498  (g)  Power  Reels,  Organzine, 

499  (h)  Power  Reels,  Tram, 

600  (i)  Lacing  Organ  and  Tram, 

601  (,;')  Special      Operations       (Winding      on 
tubes,  etc.), 

602  (k)  Nonproductive  Labor, 

603  (I)    Production  of  Organzine, 

604  (m)  Production  of  Tram. 

606  This  classification  is  simply  shown  to 
illustrate  the  plan  of  operation;  you  must 
make  the  classifications  suitable  to  your  mill. 

606  Production 

607  The  weights  of  the  production  should  be 
computed  for  the  same  period  as  the   pay 
roll,  and  entered  on  the  statistical  record. 


60  SILK     MILL     COSTS 

608  If  desired,  the  cost  per  pound  for  each 
classification   can  be  figured  for  each  pay 
roll  and  entered  upon  the  statistical  record. 
While  the  rates  for  each  week  will  not  be 
accurate,  if  the  total  production  is  consid- 
ered,   by    considering    the    inventories,    the 
averages  for  the  quarter  are  made  accurate. 

609  At  the  end  of  each  quarter  the  summaries 
of  the  pay  rolls  entered  in  the  statistical 
record  are  footed  and  a  summary  made  for 
the    quarter.     This    summary    is    made    on 
Exhibit  D,  and  the  cost  of  each  classifica- 
tion is  computed. 

610  Fractional  Pay  Rolls 

At  the  beginning  and  end  of  the  quarter, 
the  pay  roll  for  the  fractional  part  of  the 
week  should  be  prepared.  The  accrued  pay 
roll  for  the  fractional  part  of  the  week  at 
the  end  of  the  expiring  quarter  should  be 
compiled,  and  entered  upon  the  statistical 
record  with  the  pay  rolls  for  the  quarter. 
The  entire  pay  roll  for  the  first  pay  of  the 
next  quarter  can  then  be  compiled  for  the 
new  quarter,  and  the  fractional  pay  roll  for 
the  expired  quarter  deducted  therefrom.  The 
balance  should  be  applied  against  the  new 
quarter. 


SILK     MILL     COSTS  61 

611  Raw  Silk 

The  records  of  raw  silk  on  the  general 
books  should  be  made  in  pounds  and  money 
value.  The  inventory  of  the  raw  silk  at 
the  beginning  of  the  period  should  be  con- 
sidered; to  it  should  be  added  the  pur- 
chases made  during  the  quarter  and  from 
the  sum,  deduct  the  inventory  at  the  end  of 
the  period. 

612  Waste 

A  record  of  waste  should  be  made,  so  that 
the  waste  of  each  class  of  silk  will  be  known. 
The  fact  that  a  record  is  made  of  the  waste, 
of  each  classification,  will  make  the  employees 
more  careful  and  tend  to  reduce  the  loss. 

613  Lot  Record 

A  record  should  be  made  of  each  lot  of 
silk,  as  it  is  passed  in  process.  A  conve- 
nient method  is  to  provide  a  loose  leaf  book, 
and  use  a  sheet  for  each  lot.  The  heading 
of  the  sheet  should  show  the  details  of  the 
original  lot.  Two  columns  should  be  used 
for  the  numbers  and  weights  of  bales,  and 
other  columns  provided,  one  for  each  bale. 
As  the  reports  for  bundles  are  received,  the 
weight  of  each  bundle  should  be  entered  in 
the  column  for  the  bale  from  which  it  was 


62  SILK     MILL     COSTS 

taken.  A  final  summary  should  be  made 
showing  the  total  pounds  thrown  from  each 
bale. 

614  When  the  lot  is  completed  the  sheet 
should  be  removed  from  the  current  binder 
and  filed  in  a  permanent  binder  for  future 
reference. 

616  Taking  the  inventory  will  simply  require 
a  summary  being  made  from  the  sheets  in 
the  current  binder,  and  checking  up  the 
summary. 

616  Expense  Burden 

The  expenses  of  the  throwing  mill  should 
be  provided  for,  by  adding  to  the  labor 
cost  a  percentage  for  expenses.  The  per- 
centage can  be  based  upon  the  pounds  of 
production  or  the  labor  cost  of  each  class 
of  silk.  The  following  items  should  be 
provided  for  under  this  heading: 

617  (a)  Power  and  heat.     (See  Reference  No. 
530.) 

618  (b)   Light.     (See  Reference  No.  539.) 

619  (c)  Rent.     (See  Reference  No.  540.) 

620  (d)  Mill    Expenses.     (See   Reference   No. 
542.) 

621  (e)  Depreciation.     (See     Reference     No. 
544.) 


SILK     MILL     COSTS  63 

622  Power 

A  power  account  should  be  kept  in  the 
general  ledger  in  order  to  determine  the 
actual  cost  of  operating  the  power  plant, 
and  all  expenditures  for  account  of  power 
and  transmission  should  be  charged  against 
this  account.  It  should  be  charged  with 
the  following  in  a  steam  plant: 

623  (a)  Coal,  Wood,  and  Fuel  Oil  or  Gas, 

624  (6)  Lubricants  for  power  plant, 
626      (c)  Packing, 

626  (d)  Supplies  for  engine  room, 

627  (e)  Depreciation  on  power  plant, 

628  (/)    Proportion  of  rent, 

629  (g)  Wages  of  power  plant. 

630  Distribution  of  Power  Expense 

The  cost  of  power  shown  by  the  general 
ledger  account  should  be  distributed  accord- 
ing to  the  required  horse-power  of  the 
machinery  in  each  department.  If  light  is 
generated  from  the  same  power,  the  propor- 
tion required  to  operate  the  generators 
should  be  charged  to  the  light  account. 
The  proportion  chargeable  to  light  should 
be  based  upon  the  hours  the  light  plant 
was  operated,  during  the  quarter. 


64  SILK    MILL    COSTS 

631  FORMULA 

632  a  =  Light  hours. 

633  b  =  Operating  hours  of  plant. 

634  c  =  Horse-power  required  for  dynamo. 

635  d  =  Power  generated  by  power  plant. 

636  e  =  Cost  of  power  plant. 

637  /  =  Power  expense  chargeable  to  light. 

a    c 

638  rXjXe=/ 

639  Light 

A  light  account  should  be  opened  upon 
the  general  ledger,  and  in  addition  to  its 
proportion  of  power  expenses,  all  expenses 
of  lighting,  repairs,  and  maintenance  of 
lamps,  wiring,  etc.,  should  be  charged  against 
the  light  account.  The  expense  of  light 
should  be  distributed  according  to  the  lamps 
in  each  department. 

540  Rent 

Whether  rent  is  paid  or  not,  a  rent  account 
should  be  kept  on  the  general  ledger.  If 
rent  is  paid,  the  amount  paid  should  be 
distributed;  if  the  property  is  a  part  of  the 
business,  the  expense  of  rent  should  be 
computed.  To  compute  the  expense  of  rent, 


SILK     MILL     COSTS  65 

charge  the  rent  account  with  interest  at 
about  five  per  cent,  of  the  value  of  the  plant, 
insurance  upon  the  plant,  depreciation  on 
buildings,  repairs,  and  renewals  essential 
to  their  upkeep,  and  taxes. 

641  Distribution  of  Rent 

The  rent  expense  should  be  distributed 
among  the  departments  according  to  the 
floor  space  occupied  by  each  department. 
This  charge  is  very  important  and  very 
often  upsets  the  calculations  made  without 
considering  rent. 

642  Mill  Expenses  and  Supplies 

There  should  be  two  accounts  for  all  mill 
543  expenses  and  supplies:  (1)  An  account  for 
all  expenses  of  a  general  character,  and 
(2)  an  account  for  special  items  such  as  cops, 
tubes,  etc.,  for  special  lots,  not  applying 
against  the  general  throwing. 

644  Depreciation  on  Machinery 

This  account  should  provide  an  amount 
sufficient  to  cover  the  depreciation  on  the 
machinery.  It  should  be  reduced  by  the 
repairs  and  replacements  that  were 
expended  to  offset  the  depreciation.  The 


66  SILK     MILL     COSTS 

depreciation  on  the  machinery  in  each  de- 
partment can  be  determined  by  making 
schedules  of  the  machinery  in  each  depart- 
ment in  a  book  used  only  for  that  purpose. 
Every  plant  should  keep  a  schedule  of  the 
machinery  and  preserve  all  invoices  for 
purchases  of  machinery,  contracts  for  build- 
ings, improvements,  etc.,  in  order  to  have 
some  basis  upon  which  an  insurance  claim 
can  be  made.  This  is  imperative  and  of 
vital  importance.  Do  not  delay  the  matter, 
if  not  provided,  because  few  plants  obtain 
their  proper  insurance  when  they  neglect 
to  make  this  provision. 

Exhibit  D,  Cost  of  Throwing 

In  compiling  the  statement  of  the  cost 
of  throwing  on  Exhibit  D,  the  expenditures 
of  the  throwing  mill  should  all  be  grouped 
under  five  classifications: 

(1)  Productive  labor, 

(2)  Nonproductive  labor, 

(3)  Power, 

(4)  Rent,  and 

(5)  General  Expenses. 

Exhibit  D  is  provided  with  a  column  for 
all  charges,  and  columns  for  the  rates  and 
totals  of  organzine  and  tram.  If  desired,  the 


SILK     MILL     COSTS  67 

silk  can  be  classified  according  to  the  differ- 
ent grades  of  each,  and  when  so  classified,  a 
column  similar  to  numbers  6  and  7  should 
be  provided  for  each  classification.  The 
total  production  in  pounds  should  be  entered 
at  (1) ;  the  production  of  organzine  in  pounds 
should  be  entered  at  (2);  the  production 
of  tram  in  pounds  should  be  entered  at  (3); 
the  analysis  of  the  pay  rolls  for  the  quarter 
should  be  entered  in  column  (5)  opposite  the 
departmental  classifications  (13)  to  (21); 
the  total  (22)  should  be  the  total  productive 
labor  for  the  quarter;  the  pay  roll  for  spin- 
ning organzine  during  the  quarter  was 
$436.98;  this  amount  was  divided  by  20,506 
pounds  (production  of  organzine)  for  the 
rate  per  pound  for  spinning  organzine, 
$.02131  —  the  rate  should  be  entered  in  col- 
umn (9),  and  the  wages  of  the  department 
should  be  entered  in  column  (10).  The 
same  procedure  applies  to  departments  (14), 
(15),  (16),  (17),  (18),  (19),  and  (20).  The 
pay  roll  of  the  lacing  department  (21)  is 
chargeable  to  organzine  and  tram.  It 
should  be  distributed  against  both  on  a 
per  pound  basis.  The  wages  for  the  quar- 
ter, $289.93,  were  divided  by  the  sum  of 
20,506  pounds  (production  of  organzine),  and 


68 


SILK     MILL     COSTS 


COMPUTING   THE   COST   OF  THROWING.     EXHIBIT   D 


Production  jB^^** 

(D 

(2) 

(3) 

51,316  Ibs. 

20,506  Ibs. 

30,810  Ibs. 

(6) 

(7) 

(4) 

(5) 

Organzine 

Tram 

Departments 

Wages 
Paid 

(9) 

Rate 

(10) 

(11) 
Rate 

(12) 

Amount 

Amount 

per  Ib. 

per  Ib. 

(13) 

Spinning,  Organ  

436.98 

.02131 

436.98 

(14) 

Spinning,   Tram  

539.79 

.01752 

539.79 

(16) 

Doubling,  Organ  

398.84 

.01945 

398.84 

(16) 

Doubling,  Tram    

414.39 





.01345 

414.39 

(17) 

Reel  Mills,  Organ  

344.91 

.01682 

344.91 



(18) 

Reel  Mills,  Tram    .... 

434.42 

— 



.01410 

434.42 

(19) 

Power  Reels,  Organ.  .  . 

397.20 

.01937 

397.20 



• 

(20) 

Power  Reels,    Tram  .  . 

395.91 

— 



.01285 

395.91 

(21) 

Lacing     

289.93 

.00565 

115.86 

.00565 

174.07 

(22) 

Total  Direct  Labor  .  .  . 

3652,37 

.08260 

1693.79 

.06357 

1958.58 

(23) 

Nonproductive,  50%    . 

1826.04 

.04130 

846.90 

.03178 

979.14 

(24) 

Power    

862.70 

.02051 

420.58 

.01435 

442.12 

(915) 

Rent 

1150  53 

02765 

566  99 

01894 

583  54 

(26) 

General  Expense  

2978.96 

.07434 

1524.42 

.04721 

1454.54 

(27) 

Total  Cost  

10,470.60 

.24640 

5052.68 

.17585 

5417.92 

(28) 

(29) 

(30) 

(31) 

(32) 

SILK  B£**Jb:cB%  \     . 


30,810  pounds  (production  of  tram),  for  the 
rate  per  pound  $.00565.  Multiply  20,506 
pounds  by  $0.565  for  the  amount  charge- 
able to  organzine;  and  multiply  30,810 
pounds  by  $.00565  for  the  amount  charge- 
able to  tram;  for  lacing.  The  total  labor 
(22)  chargeable  against  organzine  and  tram 
should  be  increased  by  a  percentage  to  pro- 
vide for  nonproductive  labor  (23).  The 
power  account  (24)  should  be  distributed 
between  the  departments  on  a  basis  of 
required  power  (Reference  530).  The  rent 
account  (25)  should  be  distributed  between 
the  departments  on  a  basis  of  floor  space 
(Reference  541).  The  item  of  general  ex- 
pense (26)  must  include  every  expenditure 
not  provided  for  in  numbers  (1)  to  (4).  It 
may  be  distributed  upon  a  per  pound  basis, 
but  the  most  satisfactory  plan  is  to  distrib- 
ute it  between  the  departments  on  the  pro- 
ductive labor  basis.  It  is  imperative  that 
the  latter  plan  be  used  when  commission 
winding,  or  tube  and  cone  winding,  are 
done.  The  rate  for  each  item  of  expense  is 
determined  by  dividing  them  by  the  pro- 
duction of  1he  department  for  the  quar- 
ter. The  sum  (29)  of  the  items  in  column 
(9)  should  be  the  rate  for  throwing  organ- 


70  'SI  I,-K   -MtLL     COSTS 

zine.  The  sum  (30)  of  the  items  in  column 
(10)  should  be  the  total  of  the  expenditures 
chargeable  to  throwing  organzine.  The  sum 
(31)  of  the  items  in  column  (11)  should  be  the 
rate  for  throwing  tram.  The  sum  (32)  of 
the  items  in  column  (12)  should  be  the  total 
of  the  expenditures  chargeable  to  throwing 
tram.  The  total  cost  (28)  should  be  the 
total  expenditures  for  the  quarter. 

Accounting  Practice 

For  further  information  on  the  subject 
of  general  accounting,  and  how  to  plan  a 
general  set  of  books,  arrange  the  various 
accounts  and  rule  the  voucher  register,  the 
purchase  journal,  the  general  journal,  and 
the  cash  book.  (See  Accounting  Practice, 
by  the  same  author,  published  by  D.  Apple- 
ton  and  Company,  New  York.) 

Yarn  and  Cloth  Calculations 

No  consideration  has  been  given  to  this 
subject,  because  the  matter  has  been  treated 
very  thoroughly  in  several  other  works. 
The  writer  recommends  "  Yarn  and  Cloth 
Calculations,"  by  Thomas  Yates,  for  sale 
by  Lord  and  Nagle  Company,  of  Boston, 
Massachusetts. 


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12 


23  1(32 


lSm-4,'24 


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